FATF and Pakistan: Will Pakistan come out of the gray list? The real diplomatic test of Shahbaz's government now, questions arise

FATF and Pakistan: The month of October is very challenging for the Pakistani Prime Minister Shahbaz Sharif government. The sword of the Financial Action Task Force (FATF) is hanging before the Shahbaz government. In the plenary and working meeting of the FATF to be held in Paris this month, it will be decided whether to keep Pakistan in the gray list or not. What option does Pakistan have to avoid FATF action? Pakistan's policy has been to promote terrorism, India is most affected by it. In such a situation, India's eye will also be on this FATF meeting. Let us know what is the whole matter. 

The time of trial for Shahbaz

There has been a stir in the politics of Pakistan once again regarding the Gray List. It is being said that the time of diplomatic test of Prime Minister Shahbaz Sharif government in Pakistan is near. The new government of Pakistan has also intensified diplomatic efforts for this. Recently, Prime Minister Shahbaz Sharif, Foreign Minister Bilawal Bhutto Zardari and Minister of State for Foreign Affairs Hina Rabbani Khar held important discussions on FATF during their visit to different countries. These journeys are being seen as a link in the form of this link. However, before this meeting, this statement of US President Joe Biden is overshadowing Pakistan. Recently Biden has said that Pakistan is the most dangerous country in the world. 

Pakistan and gray list

1 - Pakistan joined the gray list for the first time in the year 2008. A year later in the year 2009, it was out of the gray list. After this, in the year 2012, Pakistan joined the gray list. After four years i.e. in 2016, he was able to get out of this list. Once again included in the gray list in the year 2018 on the charge of helping terrorist organizations, till now he is included in this list. Prof Pant says that if Pakistan is included in the gray list again, then it will affect its economy. 

2 - He said that the economic condition of Pakistan is not good. So he is on the verge of bankruptcy. If placed in the gray list, Pakistan's economy will suffer further. Being included in the gray list will make it difficult for Pakistan to get financial help from the International Monitoring Fund (FATF), the World Bank and the European Union. This will have a negative impact on the economy of Pakistan. Significantly, in June 2018, Pakistan was put in the gray list of FATF for the first time. 

China and Turkey in helping Pakistan

Prof Pant said that with the help of China, Turkey and Malaysia, Pakistan has been coming out of the gray list of FATF till now. He said that Pakistan has made extensive diplomatic efforts to get out of the gray list. But the shadow of Russia-Ukraine war will remain on Pakistan, he said. During the Russia-Ukraine war, the western countries and America are upset due to Pakistan's inclination towards China and Russia. 

After the recent visit of Pakistani Foreign Minister Bilawal Bhutto to America, the message that he will continue to follow the neutrality policy in the Russia-Ukraine war. This decision can be heavy on Pakistan. America and Western countries are upset with this decision of Pakistan. However, the new government of Pakistan has opened all cards to get out of the gray list, he added. Now it will be interesting to see how satisfied the FATF team is with their work. 

What is FATF

1- FATF was established in the year 1989 on the initiative of G-7 countries. Its headquarter is in Paris, the capital of France. It has 39 member countries. India has also become its member in the year 2021. The fATF works to identify vulnerabilities internationally to protect the international financial system from abuse. In October 2001, the FATF included efforts to combat terrorist financing in addition to money laundering. The fATF monitors the progress of countries in implementing its recommendations. It also reviews measures to eliminate money laundering and terrorist financing techniques. In addition, the FATF promotes the adoption and implementation of its recommendations globally. 

Those countries are included in the gray list, which are suspected of being involved in terror financing and money laundering or ignoring them. These countries are given conditional grace to act. It is monitored by the FATF. Overall you can call it 'Warning with Monitoring'. Countries on the gray list have to meet very strict conditions before taking loans from any international monetary agency or country. Most institutions do not give loans. It also affects the business of the country included in the gray list.